How Much Money Is NBC Wasting?

 

The confluence of two piece up in today's blogosphere drives home the point of why conventional network television is deader than a doornail.

First, a fascinating blog on Empire Avenue.

Blogger Ric Williams went to CES and attended a presentation by YouTube VP Robert Kyncl. Some of the YouTube stats are just astonishing.

First, YouTube is now the second largest search engine in the world, after Google.

Second, by 2015 90% of Internet traffic is going to be video.

Third, YouTube streams 3 billions hours of video a month.  3 billion hours is 30 minutes for every man, woman and child on the planet.

Fourth, Michelle Phan, a cosmetics blogger on YouTube has more viewers on her videos, done at home, than The Style Network has viewers.  750K for Style. 1.5 Million for Michelle.

Put all this together and what do you have?

Clearly, the rise of online video is astonishing.  The growth rates are unlike anything anyone has ever experienced before.

3 billion hours of video a month!  In a month NBC broadcasts 750 hours of video.

I can't even make a chart to make a comparison. NBC's monthly output (and at what cost???) is represented by this dot  .

YouTube, the Island of Manhattan.

Or maybe the distance from NY to LA.

It's not even worth talking about.

And Michelle Phan vs Style Channel.  If you were an advertiser, where would you rather place your ads - on Michelle's video or buy slots on The Style Network.  You don't even have to answer.  Loreal just signed Michelle.

And Styles advertising is linear. If you buy an ad slot at 3PM on Tuesday, that's when it gets shown.  Michelle's are non-linear. All the time, any time you want to see her stuff.

Finally, the cost.  Michelle works from home with a video camera. The Style Channel?  Not exactly.  And what Michelle can do for Style and makeup you can do for Travel or Food or Sports or just about anything else.

Oh, and one more thing.

Terry Heaton sent me a fascinating piece from Gawker this morning